Business 4 min read By Arthur Ellington
Cedar Woods posts record profit up 36% on strong presales
Cedar Woods Properties reported a 36% rise in profit to a record level, supported by a strong presales book, signalling sustained demand in the Australian residential property market.
Cedar Woods Properties has delivered a record annual profit, with earnings climbing 36% on the back of a robust presales book that underscores continued demand in the Australian residential development market. The Western Australia-based developer, which also operates in Victoria and Queensland, said the result reflected the strength of its project pipeline and the resilience of buyer appetite despite broader economic headwinds.
The company attributed the performance to a disciplined approach to project delivery and land sales, with settlements across its portfolio coming in ahead of expectations. Management pointed to a strong forward sales position as a key indicator of near-term revenue visibility, with the presales book providing a solid foundation for the coming financial year. The uplift in profit marks one of the strongest outcomes in the group's recent history and signals that the residential sector continues to hold up even as interest rates and construction costs remain elevated.
Analysts tracking the stock noted that the result beat consensus forecasts, with the margin expansion driven by a favourable mix of completed projects and cost controls. The company has been steadily replenishing its land bank, acquiring sites in growth corridors where infrastructure investment and population inflows support housing demand. Cedar Woods has also been active in the apartment segment, with several urban infill projects contributing to the earnings lift.
The developer's balance sheet remains conservatively geared, allowing it to fund future acquisitions without relying heavily on external capital. Management expressed confidence in the outlook, citing a pipeline of projects due to launch over the next 12 to 18 months. However, they also acknowledged that planning delays and labour shortages continue to pose challenges to the broader housing supply pipeline, a factor that could influence the pace of future settlements.
The record result comes at a time when Australia's housing market is navigating a period of adjustment, with affordability pressures and higher borrowing costs weighing on buyer sentiment in some segments. Despite this, Cedar Woods' experience suggests that well-located, well-priced product continues to attract purchasers, particularly among owner-occupiers and first-home buyers. The company's presales momentum indicates that demand remains concentrated in projects with clear transport and amenity links.
Looking ahead, the group expects to maintain its development tempo, with a focus on delivering a mix of lot and built-form product across its three core states. The strong presales book provides a degree of insulation from market volatility, although the company remains exposed to the timing of approvals and the availability of construction capacity. Investors responded positively to the announcement, with the shares trading higher in the wake of the earnings release.
Cedar Woods' performance adds to a mixed picture for Australian developers, where results have diverged sharply depending on geographic exposure and project type. The company's ability to convert presales into completed settlements at healthy margins will be central to sustaining the earnings trajectory into the next financial year.
